\u3000\u3 Jointo Energy Investment Co.Ltd.Hebei(000600) 535 Tasly Pharmaceutical Group Co.Ltd(600535) )
Core view
The pharmaceutical industry sector of the company achieved steady growth, and the business quality showed a good trend of continuous improvement. In 2021, the company achieved an annual operating revenue of 7.952 billion yuan, a year-on-year increase of – 41.43%. Excluding the impact of Tianshi marketing, the annual pharmaceutical industry revenue was 6.654 billion yuan, a year-on-year increase of + 4.25%; The net profit attributable to the parent company was 2.359 billion yuan, a year-on-year increase of + 109.51%, mainly due to the impact on the profit and loss of some equity sales and changes in fair value of Tianjing biology. The company’s pharmaceutical industry achieved a gross profit margin of 73.50% in the whole year, an increase of 0.03 percentage points over the previous year; At the end of the year, the company’s accounts receivable was 2029.5 billion yuan, a year-on-year low of -3.085 billion yuan; The operating cash flow reached 2.801 billion yuan, a year-on-year increase of + 56.39%, and various operating indicators showed a good trend of improvement.
Not afraid of centralized mining, the traditional Chinese medicine and biological medicine sector grew brightly. Focusing on the three major disease fields of cardio cerebrovascular, digestion and metabolism and anti-tumor, the company makes use of the collaborative development advantages of modern traditional Chinese medicine, biological medicine and chemical medicine to carry out the layout of innovative drugs, so as to continuously maintain the industry advantages and innovation development power. In 2021, the revenue of traditional Chinese medicine sector was 5.08 billion yuan, with a year-on-year increase of + 13.74%. The company continued to strengthen the sinking of marketing network and serve grass-roots medical institutions, resulting in rapid growth of basic drug products such as compound Danshen dropping pills, Qishen Yiqi dropping pills, Yangxue Qingnao Granules (pills). Among them, the company’s exclusive product Danshen Dripping Pills shipped 122 million boxes, up +13.12%, and returned to the two digit growth. In the 4 quarter of 2021, it approved the new indication of diabetic retinopathy and injected vitality into continuous growth. The biopharmaceutical sector achieved a revenue of 251 million yuan, a year-on-year increase of + 16.52%. Puyouke, a heavy product, continued to expand its production capacity, and has submitted an application for listing of cerebral infarction indications. The market space is expected to be further opened. The chemical medicine sector was mainly affected by the centralized mining of Tiqing and Wenfei, with an annual revenue of 1.322 billion yuan, a year-on-year increase of – 22.88%.
The company continued to increase investment in research and development, and the layout of innovative drugs led the market. Starting from modern traditional Chinese medicine, the company has gradually formed a large biomedical development pattern of coordinated development of traditional Chinese medicine, biological medicine and chemical medicine. Based on its own advantages, the company continues to carry out innovative research and development of traditional Chinese medicine and biological medicine, and accelerate the secondary development of key varieties. In 2021, the R & D investment of the company reached 761 million yuan, accounting for 11.44% of the revenue of the pharmaceutical industry and 9.58% of the operating revenue, which is at the leading level in the industry. Through the “four in one” R & D mode, the company currently has 94 pipeline products under research, covering 46 class 1 innovative drugs, and 52 drugs have entered the clinical stage, of which 19 are in clinical phase II and III research, and the long-term development is worth looking forward to.
Profit forecast and investment suggestions
As the investment income fluctuates greatly with the stock market, we adjusted the company’s earnings per share from 2022 to 2024 to 0.78/0.89/1.00 yuan respectively (the original 22-23eps forecast was 0.89/1.00 yuan). According to the comparable companies, we believe that the current reasonable valuation level of the company is 22 times the P / E ratio in 2022, and the corresponding target price is 17.16 yuan, maintaining the buy rating.
Risk tips
The research and development progress of the company’s biopharmaceutical products did not meet expectations; The sales of traditional Chinese medicine was less than expected Tasly Pharmaceutical Group Co.Ltd(600535) biological listing progress does not meet expectations and other risks.
